As you can see from the chart above I can count what I believe to be a wave 1 and then what appears to be a finished wave 2 that most likely ended at 14.72. we are however below the .786 support at around 17.91. A little something about wave 2's is that we can retrace the entire move up we just cannot violate where wave 1 began back in 5/7/2010 of 13.00. What I would like to see is a move back above that .786 level of 17.91 and have it hold as I believe we are in the very beginning stages of a wave 3 higher which if correct could begin at any time that could target as high as 52.06 if wave 3 is equal to 1.618 of wave 1. I will be watching this market closely as I Will be looking to Add to my positions in march 2015 contract and further out with some out of the money call options.
A break back over the 20.16 mark and more importantly the 31.85 level which would be counted as the B wave of the zig zag will be our first clue that wave 3 has begun.
Remember if this is a third wave starting it will divide up into a 5 wave impulse pattern that looks to have started at a low of 14.72. Time will tell.
(Note : this is just my opinion on what I'm seeing and by no means is this a recommendation to buy or sell this market)
good trading
CK
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